What is Renzo?
Renzo is a cross-chain liquid restaking protocol based on the EigenLayer blockchain. It allows users to stake ETH and other liquid staking tokens (LST) on popular platforms such as Ethereum, Arbitrum, and BNB Chain. Users who stake their assets on Renzo are rewarded with ezETH, which earns ezPoint rewards for future airdrops and restaking opportunities.
Renzo enables users to maximize return on investment (ROI) by optimizing capital utilization. Renzo is currently the third largest project in the liquid staking segment based on the Total Value Locked (TVL) metric.
How Does Renzo Work?
Built on the innovative EigenLayer blockchain, Renzo functions as a Liquid Derivatives platform. It acts as a critical interface to the entire EigenLayer ecosystem by providing Actively Authenticated Services (AVS). This allows Renzo to offer significantly higher returns compared to traditional ETH staking methods.
Renzo mints an equivalent amount of ezETH for every LST or ETH deposited to maintain the balance. Designed specifically for Ethereum restaking, a previously underserved market space, Renzo uses smart contracts and operational nodes for the effective execution of restaking strategies. It also acts as an entry and exit ramp for users entering and exiting the staking process.
Withdrawal is affected by restaking strategies and EigenLayer's requirements and takes a minimum of 7 days, varies depending on the AVS selected. Importantly, Renzo guarantees that users receive the total rewards generated by EigenLayer. Fees paid by users contribute to the protocol treasury and compensate Renzo node operators.
